Emerging‑market equities slipped Tuesday, erasing the record highs they had reclaimed after the Iran‑related war scare. The MSCI Emerging Market Index dropped 0.6%, pulled lower by a broad tech sell‑off and a rally in oil prices. Brent crude logged its seventh consecutive rise as traders awaited President Trump’s response to Iran’s proposal to reopen the Hormuz Strait. Investors scrambled for safe havens.

A Wall Street Journal story on OpenAI reignited worries that the AI‑driven rally is overextended, dragging chip makers down. Taiwan Semiconductor Manufacturing, which makes up 13% of the index, fell 2.2%, while Alibaba and Samsung each slipped more than 1%. Portfolio manager Rajeev de Mello said the rally is taking a breather as Brent hovers above $100 a barrel. The dip rattled risk‑on sentiment.

Higher oil prices lifted Treasury yields and the dollar, pressuring emerging‑market currencies. The Philippine peso hit a fresh low, the Thai baht weakened on downgraded growth forecasts, and South Africa’s rand fell 0.5%. Inflation fears also nudged bond yields higher, prompting the South African Reserve Bank to signal a possible rate hike if oil stays near $100. Overall, emerging markets lost ground to developed peers.